We only analyze petroleum as a big sister commodity greatly influencing commodity indices (and thus ags) but right now something notable is happening. Oil is at $75; fracking’s breakeven is at $50 and that should be signaling the industry to go to work! However, there is still the risk that OPEC will decide to increase output. Moreover, oil futures remain in the 60ish level well into 2022. By not fracking now, that number could be driven higher. The fracking industry can sell into those numbers and produce later with confidence of delivering against profitable contracts. While funds dance in and out every day, there is a futures play for the originators. Instead of a quick buck, it is a strategic swing for the fences. Provided there i...
Key Takeaways: The CME Group is launching new 90 percent Lean Beef and 50 percent Lean Beef futures and options contracts in July. There are five key factors that must be present in physical markets and futures contract specifications for futures contracts to become successful. The two l...
Russian Grain Markets: 29 June-3 July 2026 The new marketing season has officially begun in Russia, although bearish sentiment has been concentrated in the southern regions closest to the Black Sea ports, where export demand has been weakest. Delays in grain deliveries to inland elevators have...
From WPI Consulting
Illuminating the value of technical research
On behalf of a commodity producer organization, WPI evaluated the outputs from a project that featured a $5 million investment into technical research over multiple years. WPI’s team captured the results of this extensive effort and synthesized them for presentation to the organization’s governing board; among the findings uncovered and presented for the first time was the development of genomic traits proven, via rigorous testing, to provide crop yield advantages of 50 percent or more to U.S. farmers in times of drought. Capturing measurable results from long-term efforts can be challenging. Educating clients on the dynamics of success measurement when quantifiable results are not readily available requires deep client-consultant collaboration and an ability to consider both near- and long-term client aspirations with market/policy dynamics – attributes that WPI brings to every consulting engagement.